KLM Royal Dutch Airlines
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- KLM Royal Dutch Airlines
P.O. Box 7700
1117 ZL Schiphol
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- Amsterdam Airport Schiphol
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Based in Amsterdam, KLM is the national airline of the Netherlands. Part of the Air France-KLM Group, KLM operates an extensive network which includes services within Europe and to Asia, Africa, North America, Central and South America and the Middle East. KLM is a founding member of the SkyTeam alliance.
Location of KLM Royal Dutch Airlines main hub (Amsterdam Airport Schiphol)
1,013 total articles
84 total articles
Air France-KLM reported an improved operating result for 3Q2013 and confirmed its aim to increase 2H2013 operating profit by the same year-on-year amount as in 1H2013. It has provided more details on the additional restructuring measures previously announced relating to headcount reduction and planned capacity in medium-haul and cargo.
However, while the group expects losses in medium-haul and cargo to reduce significantly in 2014, it does not expect to see the full impact of these measures until 2015.
As a result, it has pushed back its net debt reduction target by one year and focused its 2014 EBITDA target at the lower end of its previous range. Unfortunately, targets that start to slip have a habit of becoming more slippery.
Qatar Airways intends to launch four weekly A330 services from Doha to Hangzhou in eastern China, 138km from Shanghai, where Qatar Airways already operates a daily service. Hangzhou becomes Qatar's sixth Chinese destination, bestowing Qatar with the title of serving more Chinese cities than any other non-Asian carrier. The previous holders of this title were KLM and Lufthansa with five cities.
Hangzhou can be an alternative to Shanghai thanks to a high-speed rail link that connects the two cities in as little as 45 minutes. But Hangzhou also has its own local market, including one of China's wealthiest – and by some counts the wealthiest – population pool. Hangzhou is also near significant trading ports.
In Hangzhou Qatar will join Ethiopian Airlines and KLM, the only other non-Asian carriers at the airport, China's 10th largest. This is a two-part report with this first part looking at Hangzhou both for its own market and as an alternative to congested Shanghai. The second part will look at the overall positioning of Emirates, Etihad, Qatar and Turkish Airlines in China.
Zambia's booming economy increasingly reliant on Kenya and Ethiopian Airways. A flag carrier needed?
As southern Africa enjoys a commodities boom, Zambia, like its neighbour Zimbabwe lacks an international airline of its own, leaving the country reliant on a small number of foreign airlines to provide connections to tourism markets and trading partners. British Airways' decision to pull out of Zambia in Oct-2013 after 80 years of service is a considerable blow to European connections. BA will redeploy the capacity to Ghana where greater returns are in view following Virgin Atlantic's withdrawal.
Privately owned Proflight Zambia operates a domestic network in Zambia and the seemingly prudently run airline has regional expansion plans, but is unlikely to be able to extend its business beyond Africa in the foreseeable future.
Zambia’s Government has been attempting to negotiate a funding deal to relaunch a flag carrier to replace Zambia Airways, liquidated in 1995 after 31 years' operation. However, the unhappy history of African governments meddling in the affairs of their national carriers means private investors are reluctant to become involved. Meanwhile, Africa's hub carriers like Kenya Airways and Ethiopian Airways are increasing service.
Air Zimbabwe is about to move into the next phase of its rebuilding programme with the launch of three more regional services and its first long-haul service to London since the carrier was grounded under a mountain of debt in Jan-2012.
The Zimbabwe flag carrier plans to commence regional services from its Harare hub to Lusaka, Zambia and Lilongwe, Malawi, as well as to Durban, South Africa in Oct-2013. This will be followed by the resumption of service to London Gatwick in Nov-2013 with refurbished 767-200s.
Air Zimbabwe relaunched in Nov-2012, operating Harare to Johannesburg followed by domestic services from Harare to Bulawayo and Victoria Falls in Apr-2013. As part of a recovery plan the workforce has been cut from over 1,000 to about 300 and fares have been slashed as part of a three month campaign to restore public confidence the carrier which previously linked Zimbabwe to its neighbours as well as Europe and Asia.
At the time of Air France-KLM’s 2Q2013 results on 26-Jul-2013, Group chairman and CEO Alexandre de Juniac said that the turnaround of the medium-haul business was taking longer than expected. “Further measures” are to be adopted, including “industrial and commercial decisions” and more job losses.
Although he did not give details of these measures, it seems likely that they will include an acceleration of the growth of Transavia, the group’s LCC, to become its principal short/medium-haul point-to-point operator. In this report, we analyse Transavia’s network and market position and compare its unit costs both with its parent and with the other European LCCs that have been so damaging to Air France-KLM.
The Dutch arm of Transavia has been part of KLM for more than 20 years and the French operation started up in 2007, but the group has not fully exploited its potential. After a number of years of following a ‘stop-start’ approach to growth, Transavia has resumed double digit capacity growth in 2013. Is it a case of ‘too little, too late’?
Uganda’s Government will soon consider a plan to relaunch Uganda Airlines as the national carrier to take on the dominance of foreign airlines and take advantage of a growing economy, boosted by a budding oil industry and tourism.
In addition the Government has unveiled plans to invest USD400 million on airport expansion and developments, the bulk of which will be spent on ageing and capacity constrained Entebbe International Airport (EIA), but will also improve several domestic airports to foster the establishment of a domestic network.
A new flag carrier will have to contend with Air Uganda which has growth aspirations of its own while the redevelopment of EIA will better position Uganda to compete with much larger regional hubs in Kenya and Tanzania.
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